The Nation's Economy White House Statement on Actions by the Board of Governors of the Federal Reserve System.
The administration believes that the actions decided upon today by the Federal Reserve Board will help reduce inflationary expectations, contribute to a stronger U.S. dollar abroad, and curb
unhealthy speculations in commodity markets.
Recent high rates of inflation, led by surging oil prices, other economic data, as well as developments in commodity and foreign exchange markets, have reinforced the administration's conviction that fighting inflation remains the Nation's number one economic priority.
The administration will continue to emphasize a policy of budgetary restraint. Enactment of effective national energy legislation to reduce dependence on foreign oil is vital to long-term success in this effort.
The administration believes that success in reducing inflationary pressures will lead in due course both to lower rates of price increases and to lower interest rates.
Note: Earlier in the day, the Board of Governors had announced that measures would be taken to increase the discount rate, the interest rate the Federal Reserve charges member banks when lending them money, from 11 percent to 12 percent; to require that banks set aside an 8-percent reserve of moneys received from foreign and other sources; and to take greater direct control over the supply of the Nation's money.
Jimmy Carter, The Nation's Economy White House Statement on Actions by the Board of Governors of the Federal Reserve System. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/248792